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TJ Jordan
September 1, 2022
Question

Accumulating and paying payroll deductions, 401K, insurance, etc in QBO

  • September 1, 2022
  • 2 replies
  • 0 views

We run  a weekly payroll in QBO with deductions for insurance, 401K and child support. I pay the child support and 401K weekly and pay the insurance monthly. Each week, I have to create a manual check to pay child support. Then I have to run a report, add up the totals and pay the 401K via the same process. Then on a monthly basis, I have to go FIND all of the insurance payments from every employee, run a total and verify the total is correct with the invoice and make the payment. In the QBDT version, all of these entries were sitting in the payroll liabilities screen and I just checked the item and the check/payment was made. It accumulated the monthly insurance payments and gave a breakdown for easy verification. Does QBO track those deductions in order to make the payments?

    2 replies

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    ChristieAnn 11
    September 1, 2022

    Hi there, TJ Jordan.

     

    Welcome to the QuickBooks Community. Let me discuss how QuickBooks handles 401K and child support. Then, ensure you can make a payment for that mentioned deduction.

     

    QuickBooks automatically calculates 401k and Child support to the Employee's paycheck. Then, this transaction will show up in the Payroll Liabilities that are located in the Tax Payroll section to track those deductions. However, making payment to them is currently unavailable with QBO and you need to pay outside the program.

     

    Once payment has been made and the entry is available on the QuickBooks Banking page, you'll have to match it with the one already recorded. This is to track the payment and make sure that the 401k and child support is already paid so your tax data stays accurate.

     

    Here's how to match:

     

    1. Go to the Banking menu and choose the Banking tab.
    2. Find a downloaded transaction with the Match option in the Action column.
    3. Select the downloaded transaction to expand the view.
    4. Review the Matching records found in QuickBooks. This is the possible matching transaction you already entered in QuickBooks.
    5. Select the link next to each match to get more details. Then, make sure this is the correct match. 
    6. If this is the correct match, close the open transaction.
    7. Click Match.

     

    After that, you can open this article to see steps on how you can view payroll tax payments through QuickBooks: Access payroll tax forms and tax payments.

     

    Lastly, you may refer to this article to view information on how you can run various reports in QBO so you can manage your tax data: Run reports in QuickBooks Online.

     

    If you have other tax payroll concerns or inquiries about retirement plan deductions in QBO, you can drop a comment below. I'm just around to help. Take care, and wishing you continued success, TJ Jordan.

    B
    BarneyH
    April 16, 2024

    so after decades of QB desktop handling these relatively easily, the overpriced and non logical QBO is making it really difficult.

      M
      MrsPizer
      April 16, 2024

      I have resorted to maintaining a spreadsheet to track these deductions and allocation of payments.  Sigh...

      T
      TJ JordanAuthor
      September 6, 2022

      I believe that this response is assuming that we use the banking option in QBO. Since we do not use this option, would the best option be to set up a task or a recurring payment (even though the amount changes weekly/monthly)?

      Tori B
      Tori B
      September 6, 2022

      Thanks for following up with us, @TJ Jordan. 

       

      As my colleague mentioned above, once the 401k and Child support has been calculated, these payments will be listed under your Payroll Liabilities which are located in the Tax Payroll section. In addition to that, making payment to them is currently unavailable with QBO, and you'll need to pay outside the program.

       

      With that said, I wanted to provide a couple of help articles that cover how you can set up child support and 401k in QuickBooks Online for easier access later on. 

       

       

      Since you've stated you do not use the banking section of QBO, I recommend consulting with your accounting professional for further advice. Your accountant can review your books and let you know the best course of action to use based on your business needs. If you don't have an accountant, don't sweat it. You can find one here in our Resource Center. 

       

      Please do let me know if you have further questions or concerns. Have a good one! 

       

       

       

      C
      ckramer8
      April 18, 2023

      How do I go about paying this each pay period in QBO, recently was forced to switch from Desktop version.  I ran a payroll recently and when i used to do it in Desktop, I would have a liability for each of the 401k withholdings and the matches, but not that's not supported on QBO?    The federal w/h and FICA came in as a liability but not the 401k?  How do I process that each paycheck now?

       

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